Online Delhi VAT Process

Online Delhi VAT Process

online sellers

The process for obtaining VAT registration has been made simpler by the Delhi Government to improve ease of doing business in India. VAT registration is required for all persons or entities selling good or products including Ecommerce Sellers in Flipkart, Sanpdeal, Amazon and more. With the VAT registration process becoming simpler, more online sellers and offline seller are expected to obtain registration and become compliant with VAT regulations.

Who can Obtain Delhi VAT or DVAT?

Delhi VAT can be obtained by individuals (Proprietorship Firms), Partnership Firms, Private Limited Companies, One Person Companies, Limited Liability Partnerships, Public Limited Companies and other government or not-for-profit entities.

Delhi VAT can be obtained under two schemes namely composition scheme and normal scheme. Under the composition scheme, the dealer is required to pay DVAT at flat rate of 1% without claiming benefit on input taxes paid. In the normal scheme, the Dealer is required to pay DVAT at rates prescribed by the Government at 1% or 5% or 12.5% with eligibility to claim input tax credit.

Penalty for Not Obtaining Delhi VAT Registration

If a person, business or other entity who is required to obtain DVAT fails to apply and obtain VAT registration within one month from the day required to make VAT application, then the person or entity is liable to pay penalty equal to Rs.1000 per day from the date of default, subject to a maximum of Rs.1,00,000.

Delhi VAT Return Filing

After obtaining DVAT registration, Delhi VAT returns must be filed on quarterly basis along with the necessary annexures. Late of failure to file Delhi VAT returns could result in a penalty of Rs.400 per day. The VAT registration can also be cancelled by the VAT Officer, if failure to file VAT returns continue.

In addition, the Department of Trade and Taxes has recently issued a new annexure which all dealers selling goods on ecommerce platforms like Flipkart, Snapdeal or Amazon is required to file with the quarterly VAT returns. Non-filing of this annexure with the VAT return could result in a penalty of Rs.50,000.

Document Required for Obtaining Delhi VAT (DVAT)

The following documents must be submitted for obtaining DVAT:

  • PAN of the Proprietor / Company / LLP / Partnership Firm
  • Identity proof of all promoters
  • Address proof of all promoters
  • Address proof for place of business
  • Photograph of all promoters